Republican Ohio House and Senate leaders want more input before finalizing budget

By MARC KOVACDix Capital Bureau Published: March 16, 2013 4:00 AM

COLUMBUS -- The Republican leaders of the Ohio House and Senate issued a somewhat cryptic statement Friday, voicing neither strong support nor strong opposition to Gov. John Kasich's tax reform package, but calling for increased input from residents and businesses.

House Speaker Bill Batchelder, Medina, and Senate President Keith Faber, Celina, outlined their goals for the biennial budget bill, which is expected to move out of the Ohio House next month, following lawmakers' two-week spring break.

"We applaud Gov. Kasich for starting the discussion on broad, overall tax reform to make Ohio a more business-friendly state. We share common goals and principles with the governor, some of which we intend to achieve in the short-term, while others will require a more deliberative approach," they said in the joint statement, adding later, "After extensive review of the budget in its entirety, it is our shared goal to propose a broad path forward to have meaningful discussions on the various impacts of the governor's tax proposals."

The comments came following continued criticism from other lawmakers about Kasich's budget proposal, which includes an expansion of the state's Medicaid program, a broadening of the state sales tax to cover services with an accompanying decrease in state and local sales tax rates, an income tax cut and any increase in taxes on oil and gas produced via horizontal hydraulic fracturing.

Conservative lawmakers aren't supporting the severance tax hike, the sales tax expansion or the Medicaid eligibility changes. Democrats, meanwhile, want any increased tax collections to be used to support schools and local governments, not to be used for another income tax cut.

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Batchelder and Faber said their goal is to lower the state's income tax burden, simplify the tax code and continue longer-term tax reforms. But they have not endorsed Kasich's plans.

"The window for initial action in the House is rapidly narrowing," they said Friday. "Therefore, we strongly encourage all affected parties, particularly job creators and those in the business community who would be most affected by these proposals, to share their views with members of the legislature quickly."

Kasich said behind-the-scene negotiations with the legislature are part of the process, and he voiced confidence that "a large chunk of what we've put in the budget" would remain in the final bill.

"We're in a process of working through this," Kasich told reporters earlier this week. "The most important thing is that we are able to help small businesses. I believe in our small business plan. We have a $1.4 billion net tax cut."

He added, "The goal is important: Small businesses, which create the majority of jobs in our state, have to be helped. We need a significant tax cut for small businesses and I believe that an income tax cut is important."

Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.